I have a cynical personality. I don’t trust easily and I want proof of statements made. Sound like you too? I think many of us are a bit cynical. Now, you shouldn’t be like my grandpa who was so cynical that he didn’t trust anyone. But a healthy dose of cynicism in the market place is ok! When you are looking for an awesome bankruptcy lawyer is Minnesota, look no further than Kain & Scott. Why? Here is the proof!

What is a Chapter 13 Bankruptcy? How does it work? How does it look on my credit? These are all wonderful questions with straight forward answers. Here are some Chapter 13 facts you will find useful.

Just like there is good cholesterol and bad cholesterol, there is also good debt and bad debt. The average Minnesota household has about $134,000 in debt. But much of this debt is secured debt, like mortgages and auto loans. Most people do not mind paying these loans, as long as the terms are reasonable and they like the car, house, or other collateral.

Most people see bankruptcy as a last resort. Typically, that strategy is a sound one. It’s usually best to try to work things out with moneylenders before choosing a more radical path.

The quick answer is yes, but you have to act quickly.

Before 2005, an eviction was just like a foreclosure. Even if a landlord got a signed court order from a judge, a bankruptcy stopped the eviction process. The Automatic Stay in Section 362 of the Bankruptcy Code applied. But the oddly-named Bankruptcy Abuse Prevention and Consumer Protection Act contained a number of pro-creditor changes, and the interplay between the stay and eviction was one of them.

This question presses upon the thousands of people who either serve at one of the National Guard bases in Minnesota or work for a firm which supports these men and women. In many cases, if a person loses a security clearance, the person also loses that job. Such a situation clearly makes the family’s financial situation worse instead of better.

 Most of us occasionally run out of money before we run out of month. In this precarious situation, just one serious financial setback can have a devastating effect. Setbacks like serious illness, divorce, or job loss can happen to anyone at any time. When these situations cause financial turmoil, you basically have two choices. You can watch things get worse or you can do something about it.

Consumer debt is one of the more troubling problems of our time. One in four people experience Post Traumatic Stress Disorder-type symptoms because of such debt. If you belong to this group and you are looking for a way out, Chapter 7 bankruptcy may be the exit strategy you have been looking for.

Each year, the federal government collects over $3 trillion in individual income taxes. Some people may think that’s because taxes are so high. That probably has something to do with it. The country’s high voluntary compliance rate (82 percent) may have even more to do with it.

But it’s not all good news. A lot of money, some $320 billion according to the IRS, goes uncollected. The Service states that the main problems are underreported income, underpayment of taxes, and nonfiling. The IRS has a lot of resources with which to collect this money. Even in the downsized IRS, there are agents and accountants whose sole job responsibility is collecting that unpaid tax. These individuals have a lot of tools at their disposal. In most cases, the IRS does not need a court order to garnish wages, file property liens, or even garnish bank accounts.

From the oldest bankruptcy law firm in Minnesota, since 1972, comes Kain & Scott to explain what you need to know about filing Chapter 13 Bankruptcy. Very few people realize the government actually has a government sponsored debt consolidation plan. It’s called a Chapter 13 Bankruptcy. And if you knew how it works, no one would do traditional debt consolidation.

Here is what you need to know about filing a Chapter 13 Bankruptcy:

Have you ever had a bad thing happen to you? Of course right? Have you ever had a bad thing happen to you twice? Of course right? Bad things happen to good people. Businesses fail, incomes drop, medical problems happen, relationships break up, we all make bad financial decisions, so what right?

Sometimes, life deals you a blow and you may need to file another bankruptcy.  You can file another Chapter 7 Bankruptcy 8 years after you filed your previous Chapter 7 Bankruptcy. Section 727 of the Bankruptcy Code limits you to filing Chapter 7 Bankruptcy every 8 years. It used to be every 6 years until the Republicans changed the law in 2005.

In a world full of confusion, wouldn’t it be nice just to have some straight forward facts about Chapter 7 Bankruptcy? I think so too. So, what follows are facts about Chapter 7 Bankruptcy.

First, Chapter 7 Bankruptcy is on your credit report for 10 years- period. Second, Chapter 7 Bankruptcy improves your credit profile. Why? Because you have no debt! Think about it- if you are a bank would you lend someone money who is in debt say 100k in credit card debt? Hardly. Now, would you lend the same person money if they had no debt? Why not!? They have no debt!

In my last two blogs I’ve written about a common problem with chapter 13: a client’s financial situation has changed during the time the chapter 13 case is pending, and making a monthly chapter 13 payment to the trustee, which once was affordable, is no longer affordable.

In this blog, I’ll write about the options that chapter 13 debtors have when a chapter 13 case no longer “works.” I’ll write about short-term solutions first.